The World Trade Organization has warned that growth in export volumes will slow this year as rising interest rates and financial instability weigh on an environment already hit by a revival of protectionism.
Volumes increased by 2.7 per cent over the course of 2022 — a lower than expected figure as the war in Ukraine and sanctions on Russia damaged supply chains still recovering from the early stages of the pandemic. This year growth is expected to be even slower, at just 1.7 per cent — well below the average level for the past decade of 2.6 per cent.
“The lingering effects of Covid-19 and the rising geopolitical tensions were the main factors impacting trade and output in 2022 and this is likely to be the case in 2023 as well,” said Ralph Ossa, chief economist of the WTO.